In this clip from The Call @ Hedgeye, Gaming, Lodging and Leisure analyst Sean Jenkins highlights the impact of higher input costs on Vegas and his overall outlook for the sector within the current quad shift.

“The Las Vegas strip is probably the single biggest beneficiary of falling input costs,” explains Jenkins. “The Las Vegas strip does back test extremely well on a more near term sort of 10-15 year back test, which is the best out of all of our subsectors in GLL.”

“Really what’s shown to drive RevPar growth right now (and what continues to) is the weekends. You are seeing explosive growth. Who knows if this latest COVID scare is going to derail all that, really the only thing we’ve gotten wrong on hotels from a data perspective is that we haven’t been bullish enough on the US leisure consumer.”

Click HERE to read a complimentary research note by our Gaming, Lodging & Leisure analyst Todd Jordan: “Positive Travel Sentiment Not Concerned With Omicron Wave”

(This clip is a small taste of what our subscribers get each day on The Call @ Hedgeye. In a nutshell, The Call is our morning research call hosted by Hedgeye CEO Keith McCullough with our 40+ analyst research team. It helps small and large investors alike make better decisions via unique and investable stock/sector updates Click here to learn more.)

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